N.Y. Education Law § 392: Rates of contribution

§ 392. Rates of contribution. * 1. Employer contributions. In the case

of any electing employee initially appointed on or before June

thirtieth, nineteen hundred ninety-two, the state, with respect to

employees of state university, and the electing employer, with respect

to employees of a community college, shall, during continuance of his

employment, make contributions at the rate of nine percentum of that

portion of his salary upon which contributions, if any, are or may

hereafter be paid to the secretary of the treasury of the United States

pursuant to article three of the retirement and social security law and

at the rate of twelve percentum of any portion of his salary upon which

such contributions are not paid, out of monies which shall be

appropriated to state university or which shall be available to the

electing employer for such purpose. In the case of any electing employee

initially appointed on or after July first, nineteen hundred ninety-two,

the state, with respect to employees of the state university and the

electing employer, with respect to employees of a community college,

shall, during continuance of his employment, make contributions at the

rate of eight percentum of his salary during the first seven years of

such employment and at the rate of ten percentum of his salary

thereafter, out of monies which shall be appropriated to the state

university or which shall be available to the electing employer for such

purpose. For purposes of this subdivision, that portion of the

employee's salary upon which contributions are or may thereafter be paid

to the secretary of the treasury of the United States pursuant to

article three of the retirement and social security law shall be deemed

not to exceed sixteen thousand five hundred dollars.

* NB Effective until October 1, 2026

* 1. Employer contributions. In the case of any electing employee

initially appointed on or before June thirtieth, nineteen hundred

ninety-two, the state, with respect to employees of state university,

and the electing employer, with respect to employees of a community

college, shall, during continuance of his employment, make contributions

at the rate of nine percentum of that portion of their salary upon which

contributions, if any, are or may hereafter be paid to the secretary of

the treasury of the United States pursuant to article three of the

retirement and social security law and at the rate of twelve percentum

of any portion of their salary upon which such contributions are not

paid, out of monies which shall be appropriated to state university or

which shall be available to the electing employer for such purpose. In

the case of any electing employee initially appointed on or after July

first, nineteen hundred ninety-two, the state, with respect to employees

of the state university and the electing employer, with respect to

employees of a community college, shall, during continuance of their

employment, make contributions at the rate of eight percentum of their

salary during the first seven years of such employment and at the rate

of ten percentum of their salary thereafter, out of monies which shall

be appropriated to the state university or which shall be available to

the electing employer for such purpose, provided however, that effective

October first, two thousand twenty-six, in the case of any electing

employee initially appointed on or after April first, two thousand

twelve, with respect to employees of the state university and the

electing employer, with respect to employees of a community college,

shall, during continuance of their employment, make contributions at the

rate of nine percentum of their salary during the first seven years of

such employment and at the rate of eleven percentum of their salary

thereafter, out of monies which shall be appropriated to the state

university or which shall be available to the electing employer for such

purpose. For purposes of this subdivision, that portion of the

employee's salary upon which contributions are or may thereafter be paid

to the secretary of the treasury of the United States pursuant to

article three of the retirement and social security law shall be deemed

not to exceed sixteen thousand five hundred dollars.

* NB Effective October 1, 2026

* 1-a. Employer contributions. In the case of any electing employee

excluded from or not encompassed within a negotiating unit within the

meaning of article fourteen of the civil service law initially hired on

or after July first, two thousand thirteen, the state and the electing

employer shall, during the continuance of his or her employment, make

contributions at the rate of eight per centum of his or her salary.

* NB Effective until October 1, 2026

* 1-a. Employer contributions. In the case of any electing employee

excluded from or not encompassed within a negotiating unit within the

meaning of article fourteen of the civil service law initially hired on

or after July first, two thousand thirteen, the state and the electing

employer shall, during the continuance of their employment, make

contributions at the rate of eight per centum of their salary, provided

however, that effective October first, two thousand twenty-six, the

state and the electing employer shall, during the continuance of their

employment, make contributions at the rate of nine percentum of their

salary.

* NB Effective October 1, 2026

2. Employee contributions. (a) In the case of any electing employee,

contributions at the rate of three percentum of his salary shall be

deducted as the employee contribution by the comptroller, or by the

appropriate fiscal officer with respect to an electing employer,

provided however, that such employee contribution shall be made by (i)

the state for employees other than those employed by an electing

employer in accordance with subdivision one of this section during such

period as (a) either section seventy-a of the retirement and social

security law or section five hundred twenty-eight of this title provides

that the contribution of each member of the New York state employees'

retirement system or the New York state teachers' retirement system in

the employ of the state shall be reduced by at least eight percentum of

his compensation or (b) employee contributions to either such system are

no longer required by reason of such system becoming noncontributory for

state employees, or (ii) by the electing employer in accordance with

subdivision one of this section during such period as the contributions

of any members of either the New York state employees' retirement system

or the New York state teachers' retirement system or of any other public

retirement system in this state in its employ shall (a) be reduced by at

least eight percentum of their compensation in accordance with section

seventy-a of the retirement and social security law or section five

hundred twenty-nine of this title or section B3-36.1 or section B20-41.1

of the administrative code of the city of New York or (b) employee

contributions to any such system of which any of its employees are

members are no longer required by reasons of such system becoming non

contributory for such employees; and provided further, however, that

such employee contribution with respect to the fiscal year of the city

of New York beginning on July first, nineteen hundred seventy-two and

ending on June thirtieth, nineteen hundred seventy-three shall be made

by the electing employer in the case of any electing employee who is

employed by a community college operated in such city, notwithstanding

any of the foregoing provisions of this subdivision to the contrary.

(b) Notwithstanding any provision of paragraph (a) of this subdivision

or any other provision of law to the contrary, but subject to the

provisions of subdivision d of section six hundred thirteen of the

retirement and social security law, in the case of any electing employee

initially appointed on or after July first, nineteen hundred ninety-two

who is employed by a community college subject to the provisions of this

article which is operated in the city of New York, contributions at the

rate of three percentum of his or her salary shall be deducted as the

employee contribution by the appropriate fiscal officer with respect to

such community college.

(c) Notwithstanding any other provision of this section or any other

law to the contrary, (1) on and after April first, two thousand eight

for a member who joined the optional retirement program established

pursuant to this article before April first, two thousand twelve and who

has ten or more years of membership in such optional retirement program,

the state shall contribute one-third of the three percent employee

contribution required pursuant to the provisions of this section on

behalf of such employee; and (2) on and after April first, two thousand

nine for a member who joined the optional retirement program established

pursuant to this article before April first, two thousand twelve and who

has ten or more years of membership in such optional retirement program,

the state shall contribute two-thirds of the three percent employee

contribution required pursuant to the provisions of this section on

behalf of such employee; and (3) on and after April first, two thousand

ten for a member who joined the optional retirement program established

pursuant to this article before April first, two thousand twelve and who

has ten or more years of membership in such optional retirement program,

the state shall contribute the three percent employee contribution

required pursuant to the provisions of this section on behalf of such

employee. The provisions of this paragraph shall not apply to any

electing employee who becomes a member of the optional retirement

program on or after April first, two thousand twelve.

* (d) Notwithstanding any other law to the contrary, beginning April

first, two thousand thirteen any electing employee appointed on or after

April first, two thousand twelve, the rate at which each such employee

shall contribute in any current plan year (January first to December

thirty-first) shall be determined by reference to the wages of such

member in the second plan year (January first to December thirty-first)

preceding such current plan year as follows:

(i) members with wages of forty-five thousand dollars per annum or

less shall contribute three per centum of annual wages;

(ii) members with wages greater than forty-five thousand per annum,

but not more than fifty-five thousand per annum shall contribute three

and one-half per centum of annual wages;

(iii) members with wages greater than fifty-five thousand per annum,

but not more than seventy-five thousand per annum shall contribute four

and one-half per centum of annual wages;

(iv) members with wages greater than seventy-five thousand per annum

but not more than one hundred thousand per annum shall contribute five

and three-quarters per centum of annual wages; and

(v) members with wages greater than one hundred thousand per annum

shall contribute six per centum of annual wages.

Notwithstanding the foregoing, during each of the first three plan

years (January first to December thirty-first) in which such member has

established membership in the State University Optional Retirement

Program, such employee shall contribute a percent of annual wages in

accordance with the preceding schedule based upon a projection of annual

wages provided by the employer.

* NB Effective until October 1, 2026

* (d) Notwithstanding any other law to the contrary, beginning April

first, two thousand thirteen any electing employee appointed on or after

April first, two thousand twelve, the rate at which each such employee

shall contribute in any current plan year (January first to December

thirty-first) shall be determined by reference to the wages of such

member in the second plan year (January first to December thirty-first)

preceding such current plan year as follows:

(i) members with wages of forty-five thousand dollars per annum or

less shall contribute three per centum of annual wages;

(ii) members with wages greater than forty-five thousand dollars per

annum, but not more than fifty-five thousand dollars per annum shall

contribute three and one-half per centum of annual wages;

(iii) members with wages greater than fifty-five thousand dollars per

annum, but not more than seventy-five thousand dollars per annum shall

contribute four and one-half per centum of annual wages;

(iv) members with wages greater than seventy-five thousand dollars per

annum but not more than one hundred thousand dollars per annum shall

contribute five and three-quarters per centum of annual wages; and

(v) members with wages greater than one hundred thousand dollars per

annum shall contribute six per centum of annual wages.

Notwithstanding the foregoing, during each of the first three plan

years (January first to December thirty-first) in which such member has

established membership in the State University Optional Retirement

Program, such employee shall contribute a percent of annual wages in

accordance with the preceding schedule based upon a projection of annual

wages provided by the employer, provided, however, that notwithstanding

any other law to the contrary, on and after October first, two thousand

twenty-six, the rate at which any electing employee who is subject to

this paragraph shall contribute in any current plan year (January first

to December thirty-first) shall be determined by reference to the wages

of such member in the second plan year (January first to December

thirty-first) preceding such current plan year as follows:

(i) members with wages of seventy-five thousand dollars per annum or

less shall contribute three per centum of annual wages;

(ii) members with wages greater than seventy-five thousand dollars per

annum but not more than one hundred thousand dollars per annum shall

contribute four per centum of annual wages;

(iii) members with wages greater than one hundred thousand dollars per

annum but not more than one hundred twenty-five thousand dollars per

annum shall contribute five and one-quarter per centum of annual wages;

and

(iv) members with wages greater than one hundred twenty-five thousand

dollars per annum shall contribute five and three-quarters per centum of

annual wages.

* NB Effective October 1, 2026

3. Payment of contributions pursuant to subdivisions one and two of

this section shall be made to the designated insurer or insurers upon

audit and warrant of the comptroller for employees of the state

university and by the appropriate fiscal officer for employees of an

electing employer.

4. In the case of an electing employee initially appointed on or after

July first, nineteen hundred sixty-four, no contributions pursuant to

subdivisions one and two of this section shall be made by the state or

by the electing employer until his completion of one year of service and

continuance in service thereafter. Employee contributions, if any,

required during this initial year of service shall be deducted and held

by the comptroller or by the appropriate fiscal officer of an electing

employer. At the end of his initial year of service, a single

contribution in an amount determined pursuant to subdivisions one and

two of this section, with interest at the rate of four percentum per

annum, shall be made by the state, upon audit and warrant of the

comptroller, and by the appropriate fiscal officer for an electing

employer, to the designated insurer or insurers, on behalf of such

employee continued in service. In the case of an electing employee who

does not continue in service with state university or with a community

college beyond his initial year of service, the amount of employee

contribution, if any, deducted from his salary shall be refunded to him,

with interest at the rate of four percentum per annum.

5. The provisions of subdivision four of this section shall not apply

to any electing employee other than an employee appointed for a

specified period of less than three months who, at the time of initial

appointment, owns a contract determined by the board to be similar to

those contracts to be purchased under the optional retirement program

and issued by the designated insurer or insurers.